[Federal Register Volume 64, Number 132 (Monday, July 12, 1999)]
[Notices]
[Pages 37496-37497]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17639]
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 33-99]
Foreign-Trade Zone 59--Lincoln, NE; Application for Expansion of
Manufacturing Authority--Subzone 59A, Kawasaki Motors Manufacturing
Corp., U.S.A., Plant, Lincoln, NE (Motorcycles, Personal Watercraft,
All-Terrain Vehicles, Utility Work Trucks, Industrial Robots)
A application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Lincoln Foreign Trade Zone, Inc., grantee of 59,
requesting an expansion of the scope of manufacturing authority to
include new manufacturing capacity under FTZ procedures and requesting
authority to expand the boundary of FTZ Subzone 59A at the Kawasaki
Motors Manufacturing Corp., U.S.A. (KMM), plant in Lincoln, Nebraska.
It was formally filed on June 25, 1999.
Subzone 59A was approved by the Board in 1980 with authority
granted for the manufacture of motorcycles, jet skis, and four wheel
all-terrain vehicles (Board Order 163, 45 FR 58637, 9-4-80). The
subzone was subsequently expanded in 1994 (Board Order 712, 59 FR
66891, 12-28-94) and currently consists of a single, 305-acre site with
a total of 1.13 million square feet of manufacturing and warehouse
space. The Board later approved the manufacture of off-road, utility
work trucks and industrial robots with 6 or more axes of motion under
FTZ procedures for the U.S. market and export (Board Orders 744 and
745, 60 FR 30517, 6-9-95) .
The applicant is now requesting authority to expand the subzone
boundary to include an adjacent 27-acre parcel and to expand the scope
of FTZ manufacturing authority to include increased capacity for the
production of motorcycles, personal watercraft , all-terrain vehicles,
utility work trucks, and industrial robots. Under the current expansion
plan, the KMM plant's
[[Page 37497]]
capacity will be approximately doubled (to 225,000 units per year) with
the addition of 1.07 million square feet of production area. The
activity will involve fabrication, welding, molding, and assembly using
domestic and foreign-origin components. The application indicates that
the expanded operations will reduce the current level of foreign-
sourced components used in the manufacturing process. Foreign-sourced
components and materials (about 40 percent of the finished vehicles'
material value) include: plastic parts, rubber belts, fasteners, air
and liquid pumps/compressors, data processing equipment (numerical
controllers) and parts, optical readers, valves and switches, electric
motors and transformers, parts of industrial robots, transmissions/gear
boxes, clutches, diodes, transistors, semiconductors, liquid crystal
devices, measuring instruments, spark-ignition/diesel engines,
transmissions, calipers/brake parts, wheels, tires, parts of rubber,
articles of agglomerated cork, paperboard/cardboard boxes, glazers
putty, caulking, glue/adhesive, plastic tubes/pipes/fittings,
reflective sheet, polyurethane and PVC sheet/film/laminates, plastic
knobs/handles/gaskets/washers/seals/fasteners, V-belts, decals, printed
materials, cargo nets, non-electrical graphite/carbon items, safety
glass, mirrors, profiles/tubes/sections/couplings/wire of alloy, cast
or stainless steel, chain, fasteners, steel/copper springs, brake
cables, aluminum tubes/pipes/fittings/fasteners, articles of lead, base
metal articles, heat exchangers, filters, bearings and related
assemblies, gears, transmission shafts, torque converters, pulleys,
ball/roller screws, sprockets, flywheels, propellers, electric motors,
commutators, capacitors, fuses, switches, resistors, stators, rotors,
inductors, transformers, electromagnetic couplings, batteries, ignition
components, starters, alternators, voltage regulators, lighting
equipment, horns, audio components, radios, cassette players,
navigational equipment, alarm systems, electronic components, fiber
optic and coaxial cables, wire, parts of motor vehicles (Heading 8708),
hulls, flat panel displays, measuring and process control instruments,
thermostats, gauges, and clocks (duty rate range: free-15%,
16 cents+2.5%).
FTZ procedures exempt KMM from Customs duty payments on the foreign
components used in export production (15% of shipments). On its
domestic sales, the company can choose the duty rate that applies to
the finished motorcycles, personal watercraft, all-terrain vehicles,
utility work trucks, and industrial robots (free-2.8%) for the foreign
components noted above. The request indicates that the savings from FTZ
procedures will continue to help improve the facility's international
competitiveness.
In accordance with the Board's regulations, a member of the FTZ
Staff has been designated examiner to investigate the application and
report to the Board.
Public comment on the application is invited from interested
parties. Submissions (original and three copies) shall be addressed to
the Board's Executive Secretary at the address below. The closing
period for their receipt is September 10, 1999. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period (to September 27, 1999).
A copy of the application will be available for public inspection
at the following location: Office of the Executive Secretary, Foreign-
Trade Zones Board, Room 3716, U.S. Department of Commerce, 14th Street
& Pennsylvania Avenue, NW, Washington, DC 20230.
Dated: June 28, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-17639 Filed 7-9-99; 8:45 am]
BILLING CODE 3510-DS-P
